Harare (New Ziana) – Zimbabwe has received US$961 million from the International Monetary Fund (IMF), its share of the fund’s US$650 billion Special Drawing Rights (SDR) disbursement meant to cushion member states against the effects of COVID-19.
SDRs are an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
To date, the IMF has issued SDRs worth about US$943 billion.
Finance and Economic Development Minister Professor Mthuli Ncube and Reserve Bank of Zimbabwe governor Dr John Mangudya confirmed the allocation in a joint statement on Tuesday.
“We would like to advise the public that Zimbabwe has received SDR 677.4 million (USD961 million) from the International Monetary Fund under the IMFs USD650 billion SDR allocation earmarked to provide additional liquidity to the global financial system,” read part of the statement.
“The funds were deposited in the Reserve Bank of Zimbabwe account with the IMF for value (on) 23 August, 2021. The immediate impact of this support from the IMF is to increase the foreign exchange reserves position of the country by US$961 million. This will go a long way in buttressing the stability of our domestic currency.”
The government committed to use the SDRs transparently.
Part of the money will be used to boost healthcare and education provision, in the productive sectors of the economy and for infrastructure development.
“We would like to express our great appreciation to the IMF for this disbursement which shall be used transparently in line with the IMF guidance,” the statement said.